Natural gas firm faults EPA probe

Water supplies investigated in Dimock, Pa.

Jan. 26, 2012

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DIMOCK, Pa. -- Intervention by federal environmental regulators in rural Susquehanna County threatens to "undercut" President Barack Obama's commitment to developing the nation's shale gas reserves, according to the top executive of Cabot Oil & Gas.

In a letter Thursday, Cabot CEO Dan Dinges fired back at U.S. Environmental Protection Agency Administrator Lisa P. Jackson for a decision last week to overstep Pennsylvania regulators and begin a widespread investigation of drilling-related water contamination in Dimock Township.

"EPA's approach has caused confusion that undermines important policy goals of the United States to ensure safe, reliable, secure and clean energy sources from domestic natural gas," Dinges wrote.

On Jan. 19, the EPA announced it would test 61 private water wells within a 9-square-mile area near Cabot's natural gas drilling operations.

The federal agency's move was seen as a rebuke to the Pennsylvania Department of Environmental Protection, which had worked for more than three years to resolve issues between the company and a group of Dimock residents.

Dinges, in his letter, said more than 10,000 pages of data already exist on more than 2,000 water wells in the area, and the investigation into water issues may send the wrong message about shale gas drilling.

"EPA's actions in Dimock appear to undercut the President's stated commitment to this important resource," Dinges wrote, "even in light of EPA's regulatory mission."

In his State of the Union address on Tuesday, Obama said his administration will "take every possible action to safely develop" the country's natural gas supply, specifically citing gas extracted from shale rock formations as an important new resource.

"America will develop this resource without putting the health and safety of our citizens at risk," Obama said.